Forex Today: USD recovery fizzles in Asia FX, German Ifo in focus
Markets witnessed a quiet Asian session on Tuesday, with the release of the BOJ July meeting minutes having limited impact on the Yen markets. Meanwhile, broad based US dollar recovery, following yesterday’s strong US PMI readings, fizzled amid persistent US political uncertainty. Kiwi staged a solid comeback on the back of higher oil prices, while rest of the majors remained in a wait-and-see mode ahead of the FOMC decision due tomorrow.
Main topics in Asia
Brent Oil is having another go at 1-hr 200-MA hurdle
Oil prices ended on a higher note on Monday after Saudi Arabia pledged to lower oil exports, while Nigerians agreed to limit their production.
BOJ minutes: Need to keep policy easy as 2% inflation target still distant
The minutes of the June Bank of Japan (BOJ) policy meeting released this Tuesday morning showed…
Bitcoin options contracts to be launched in September
LedgerX LLC, a cryptocurrency trading platform operator, just received approval from the US Commodity Futures Trading Commission (CFTC) to operate as a federally-regulated exchange and clearing house for derivatives contracts settling in digital currencies, Bloomberg reports.
Sources: Unrest bubbles among Trump's key foreign policy aides - RTRS
Reuters quoted a source familiar with the situation, noting that frustration and differences are mounting among leading foreign policy officials in Trump's administration, as they face policy and bureaucratic defeats and lack of independence to do their jobs.
Key Focus ahead
Next of note today, in terms of economic releases, remains the German Ifo business climate and UK CBI industrial orders data, which will be reported in the European session. In the US session, the second-liner housing data will be published, followed by the key US consumer confidence numbers. Besides, the BOE Chief Economist Andy Haldane’s speech is due on the cards during the mid-American session.
GBP/USD supported at 1.3015, eyes on UK Q2 GDP for fresh direction
Fresh bids emerged once again near 1.3015 region in the Asian trades, allowing a tepid-bounce in GBP/USD back towards 1.3050 levels.
EUR/USD sees a sharp rise in 1-month 25D Risk Reversal, eyes German IFO
Monday’s pullback in the EUR/USD pair to 1.1626 was short lived as the offered tone around the USD gathered pace in Asia, pushing the spot above the 1-hour 50-MA of 1.1651.
Fed could point to an announcement on balance sheet policies in September - Barclays
Analysts at Barclays offers insights on what to expect from Wednesday’s FOMC monetary policy decision, highlighting that the main point of interest at the July meeting will be the announcement of the start time of balance sheet normalization.
Gold - Doji and a bearish follow through?
Gold’s two way price action and a flat closing at $1254.95 on Monday led to the formation of a classic ‘Doji candle’, which highlights indecision in the market place.